By Kishori Krishnan
South Africa’s Gold Fields (GFIJ.J) and three smaller Canadian rivals said lower costs helped boost their quarterly results, sending shares of all four precious metal mining companies higher last week.

The gold miners, — Gold Fields, Iamgold Corp (IMG.TO), Alamos Gold (AGI.TO) and New Gold Inc (NGD.TO) — provided mixed outlook on gold production and anticipated production costs.

Gold Fields, the world’s No. 4 gold producer, expects costs to rise 15 per cent in the near term, on the back of a new pay deal for workers, higher electricity tariffs and a stronger rand/dollar exchange rate. It also said production would remain below its long-term target.

But Iamgold and Alamos were more optimistic and forecast an increase in near-term gold output, along with a decline in production costs. New Gold reiterated its prior production and cost outlook.

Last week, Barrick Gold Corp (ABX.TO), the world’s largest gold producer, posted stronger-than-expected quarterly earnings, while forecasting lower mining costs in the quarters ahead.

Minefinders Corp. Ltd.’s (TSX:MFL) second-quarter loss narrowed compared to a year ago before it started generating revenue from its major mining operation. Its Dolores gold and silver mine in Mexico has moved from pre-commercial operations to commercial production, helping the company generate US$ 23.3 million in revenues.

“The second quarter has continued to deliver strong and increasing output at a relatively low cash cost,” said president and chief executive officer Mark Bailey.

Courtesy: Gold Investing News

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